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Advertising in Mainstream Media much Higher

Mainstream media has a much larger reach as compared to social media and hence is a more feasible options for companies seeking to advertise. China's internet penetration achieved 22.6% in 2009, but there is a definite uptake where social media and advertising is concerned. In terms of growth rate, mainstream media has reached a saturation point whereas the opposite is true for social media.

Increasing Online Advertising Revenues and Expenditure

Advertising expenses have increased by around 35% from US$405 million in 2005 to US$605 million in 2006. Analysys International, a Beijing based researcher has anticipated advertising expenses online to increase to US$861 million in 2008. However Deutsche Bank is more aggressive in its estimations and forecasts a growth rate of around 50 percent with the market growing to US$731 million in 2007 to US$1.79 billion in 2008.

China’s leading Internet value-added services provider, Tencent’s online advertising revenues more than doubled over the previous years'. Tencent’s online advertising revenue increased by around 106% this year (112.8 million Yuan). This was a sharp increase from the 54.8 million Yuan attributable to the previous year’s growth. (http://www.chinadaily.com.cn/bizchina/2006-03/23/content_550704.htm)

Emphasis on Brand-Focused Advertising

According to a study done by Analysys International, 71.3% of online advertising expenditure in China was on brand-focused advertising whereas 28.7% was spent on search engine ads emphasizing particular products/services. Sina and Sohu, leading Chinese internet portals, both earned $5m in advertising revenues attributable to the 2006 FIFA World Cup. Currently, the online advertising market in China is small compared to it’s counterparts in the international markets. However it should be noted that the growth rate for online advertising in China.

Television Most Reliable Source of Information

The Chinese public turns to television as the most trusted source of information, which is followed by the radio. This trend was not consistent with the first source of information that the public refers to. Television is the first referred source with web-based media following closely behind. Radio, although highly trusted, had 0% of the survey participants listing it as the first source of information. The overall trend emerging highlights the prevalent nature of mainstream media in China while social media is still gaining more importance. (Source: Edelman Trust Barometer 2008)

China - Social Media and PR across Asia




China: Advertising - Social Media and PR across Asia


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